FG Assures Workers of Pension Safety and Legal Compliance
The Federal Government has assured workers that their pensions are secure, emphasizing adherence to laws governing the administration of these funds before using them for developmental purposes.
On Wednesday, Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, stated that there is no intention to illegally access pension funds.
Edun’s comments came in response to reports suggesting the government might use pension funds to invest in infrastructure and housing.
These reports elicited reactions from notable figures and organizations, including former Vice President Atiku Abubakar, the Nigeria Labour Congress (NLC), and the Trade Union Congress (TUC), who cautioned against tampering with workers’ pensions.
In a clarifying statement, Edun reaffirmed that the pension sector is regulated by stringent legal frameworks, similar to other financial industry sectors. He assured that the government would not bypass any guidelines in managing pension funds.
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The statement read: “It has come to my notice that there are stories making the rounds that the Federal Government plans to illegally access the hard-earned savings and pension contributions of workers. Nothing could be farther from the truth. The pension industry, like most financial industries, is highly regulated. There are rules. There are limitations about what pension money can be invested in and what it cannot be invested in.
“The Federal Government has no intention whatsoever to go beyond those limitations and go outside those bounds, which are there to safeguard the pensions of workers.
“What was announced to the Federal Executive Council was that there was an ongoing initiative drawing in all the major stakeholders in the long-term saving industry, those that handle funds that are available over a long period, to see how, within the regulations and the laws, these funds could be used maximally to drive investment in key growth areas, including infrastructure, housing, and, of course, to find a way to provide Nigerians with affordable mortgages.
“Within this context, there is no attempt, nor is it being considered, to offer unsafe investments for pension funds or even insurance funds or any investment funds. No attempt whatsoever to increase the risk. No attempt whatsoever to lower the returns that would otherwise be earned.
“It is important to remember that the Federal Government possesses the ability to provide guarantees where stocks are needed in order to unlock funding that will lead to growth, creation of jobs and alleviation of poverty.
“It is an ongoing conversation, a challenge, a test for the best and the brightest in the financial industry to come up with solutions that, whilst safeguarding the long-term savings, do provide an avenue that helps to boost growth in the economy.”
